Overview &

Industrial
Disputes in Jet
The joy of Flying
Airways

Sub:
Industrial
Relations (IR)
 Introduction
 Jet Airways was founded on 1993 by Naresh Goyal.

 Jet Airways has come a long way to becoming the fastest growing
airlines in the world with 13,945 employees currently employed with the
organization.

 Jet Airways is offering 73 Destinations in total 19 Countries - Each

connected every 10 minutes.

 Naresh Goyal moved in to buy Sahara Airlines a year later for Rs 1,450
Crores in 1994, when Airlines market growth rate was 30-35%.

 Jet air ways have a massive airship fleet size of 100 aircrafts.

 Jet Airways (Jet+JetLite) had a market share of 22.6% in terms of

passengers carried, thus making it a market leader in India.
 Current state of Jet Airways

Important Officials of Jet Airways:

Founder & Chairman: Naresh Goyal
Appointee CEO : Gary Toomey
Interim CEO & COO: Capt. Hameed Ali.

 Annual Revenues –
 Rs.14,401 Crores (2010-2011)
 Rs. 17.28 Crores (2011-2012)
 Profit/Loss After Tax –
 Rs.27 Crores profit (2006-2007)
 Rs. 1.4Crores loss(2011-2012)
 All Other Domestic Players showed loss(2006-07)
 Achievements & Awards

 Best First-Class Service in the World award at Business

Traveller’s 20th annual ‘Best in Business Travel’ awards.
 Best Business Class & Best Economy Class at the
Business Traveller Awards
 Best Overall in Entertainment at the Avion Awards 2010
 India's Popular Domestic Airline at the SATTE 2006
Awards
 India’s Airline at the World Travel Awards, 2006
 18th TTG (Travel Trade Gazette) Travel Awards 2007
 India’s Most Respected Company in the Travel and Food
Sector by Businessworld 2003
 Business Traveller’s Best Indian Airline Award in London.
 Airship Fleet

 Airbus A330-200
 Airbus A330-300
 ATR 72-500
 ATR 72-600
 Boeing 737-800
 Boeing 737-700 Boeing 777-300ER
 Boeing 737-900
 Boeing 737 MAX 8
Boeing 777-300ER
 Boeing 777-300ER
 Boeing 787-9
 Market for Jet Airways

 International market Competitiors - British Airways & South West

Airlines
 Domestic market Competitors - King fisher, Indian Airlines, GoAir,
Spicejet & Indigo
 Industrial Disputes in Jet Airways

Jet Airways faced Two Major industrial crisis during its lifetime:

 1900 Employees Sacked and then Reinstated in 2008.

 The Pilots Revolt 2009
 1900 Employees Sacked & then
Reinstated

 According to CAPA, buying Sahara was a big strategic

mistake by Jet Airways.
 Jet had been constantly incurring losses since 2007-08.
 In 2008, Naresh Goyal entered into an operational tie-up
with arch rival Vijay Mallya’s Kingfisher.
 Further, Jet sacked 1,900 cabin crew members in October
2008, all probationary and temporary workers, across all
categories and departments.
 The Sacking was justified as an attempt to switch to leaner
business models and cost-optimize the business operations
of the airways.
 1900 Employees Sacked & then
Reinstated

"It is an unfortunate decision, which all of us in the company

regret. A total of 1,900 people are being served separation
notice. 800 have already been served notice. In the next
few days the others will also be served notice. It is an
attempt to save the jobs of remaining 11,100 employees,"
said Executive Director B Saroj Datta.

 A severe backlash resulted, not just from employees but

also from the government, political parties and regulatory
bodies.
 1900 Employees Sacked & then
Reinstated

 In a very dramatic Press conference by Jet Airways

Chairman – Naresh Goyal reinstated the employees a day
later saying that he was not aware of these sackings.
 “I was not there when this decision was taken. I came to
know about it later. I have not been able to sleep all night. I
apologize for what has happened & I request all of you to
start work from tomorrow morning,” Goyal said.
 The company had said it was forced to trim staff to cut its
losses but Goyal claimed that he had not been consulted
before the Jet senior management ordered the
retrenchment.
 1900 Employees Sacked & then
Reinstated

"The sackings were completely illegal. There was no notice

nor was government’s permission taken to sack 1800
employees. Perhaps they realized their folly and decided to
take these employees back. The matter would have landed
in the court."

- Anand Pujari, Labour lawyer, SI Joshi & Co. in October

2008
 The Pilots Revolt 2009

 The young pilots got insecure seeing the previous scenario

and led to formation of National Aviators Guild the NAG
on 24th July, 2009; registered by the Regional Labour
Commissioner.
 On July 31, 2009, the two senior pilots of Jet Airways,
who were both office-bearers of NAG, were dismissed by
a single-line e-mail stating that their services were
terminated with immediate effect and no reasons were
assigned for the same.
 The pilots were accused of coercing all the others on
joining and forming a union.
 The NAG requested management for discussion an
representation, which fell on deaf ears.
 The Pilots Revolt 2009

 NAG issued a strike notice on August 24, 2009.

 The management obtained an ex parte order from the
Bombay High Court by virtue of Sections 22 and 23 of the
Industrial Disputes Act restraining the NAG from striking.
 Total of 500 pilots reported sick and went unanimously on
leave.
 Series of discussions took place in the presence of
Regional and Chief Central Labor Commissioner.
 The major regulations referred for this case were Trade
Union Act, 1926 & Industrial Disputes Act, 1947.
 All discussions were meeting a deadlock n stalemate
situation.
 The Pilots Revolt 2009

 During this 14 days of strike continued causing a loss of

estimated Rs.15 Cr per day and hardship to innumerable
customers due to flight cancelling.
 The NAG withdrew the strike notice on the evening of
September 7, 2009
 The matter was yet to be resolved as the pilots were still
agitated on their unfulfilled need.
 Finally, a draft was worked out late night between
Congress leader Sanjay Nirupam, representatives of the
pilots and Jet Airways Chairman Naresh Goyal.
 The management agreed to reinstate the sacked pilots on
the condition that it would reconsider the wisdom of a
union.
 The Pilots Revolt 2009

 The negotiations ended with the formation of a

grievance committee consisting of both pilots and
administration members to hear such cases.
 It was decided that a committee to look into the
coordination between the pilots and the management
would be formed.
 The committee would work under the Central Labour
Commissioner.
 Normal flight were resumed on Sunday morning 11th
September, 2009.